Finally, a Tata Steel deal
TEXT OF STORY
MARK AUSTIN THOMAS: The Indian company Tata Steel has won the battle to take over the European steel maker Corus. The deal values Corus at $11.3 billion. From London, Stephen Beard reports.
STEPHEN BEARD: The takeover will rocket Tata Steel towards the top of the pile.
Last year the company ranked only 56th in the list of world steelmakers. With this deal it will rise to fifth place.
Corus shareholders are celebrating. Their shares jumped nearly 7 percent on the news. But Tata’s investors are nervous about the cost. Their shares fell more than 11 percent.
This deal follows the even bigger takeover of Arcelor by the Indian-led steel firm Mittal. There’s likely to be even more takeover activity the future, says steel analyst Patrick Flockhart.
PATRICK FLOCKHART: The steel industry is very fragmented and I actually think this new company will actually go forward and make further acquisitions itself and there will be other consolidation elsewhere in the sector.
The Tata Group, which owns Tata Steel, is also likely to be active elsewhere. The company owns a vast range of assets including Tetley Tea and Daewoo cars.
In London, this is Stephen Beard for Marketplace.
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